IDX Garuda Approve Quasi Reorganization

JAKARTA: PT Garuda Indonesia Tbk (GIAA) states quasi reorganization plan that would do the company has received approval from the Indonesian Stock Exchange (BEI).

"Regulators have you green light. From the Stock Exchange, "said Finance Director Elisa Lumbantoruan GIAA in public exposure in Jakarta, Thursday (31 / 3).

According to Elisa, the approval of a quasi reorganization plan will be submitted formally in the General Meeting Extraordinary Shareholders (EGM) company which was originally carried out in July or August. In the implementation of this plan, the company will use the financial statements of the second quarter of 2011 as a reference.

"We agendakan it in July-August. Use of financial reports in June, one month's audit. This brings the benefit of shareholders. There will be revamping the balance sheet, "he said.

As reported previously, Garuda plans to do to eliminate the quasi reorganization accumulative losses recorded in the financial statements of the Company.

Under SFAS No. 51 Quasi-reorganization is an accounting procedure that govern the company to restructure its equity by eliminating the deficit and re-evaluate all assets and liabilities.

With this the company expects to continue its business better, as if starting from scratch is good (fresh start), with a balance sheet showing the current value and without the burden of deficit

"Like the first loss continues. There is a gain from revaluation of assets into compliance. In the latest accounting principles there are differences. Namely only previous assessment of the value of economic age. Which now, to judge from market value and productivity value of the asset itself, "explained in

Elisa pointed out, for 15-year-old aircraft could be higher economic value compared to book value. Due to certain series aircraft if sold into the market is still a lot of takers.

He continued, the quasi reorganization will allow the company to distribute dividends. The plan is expected to be implemented this year.

"We want to do this year, if you wait for next year's conflict with the rules of Bapepam-LK," said Elisa.

However, continued Elisa, management has so far not done any analysis related to the plan because the company has not completed the audit of the acquisition of funds public offering (IPO). After the audit completed, the company will review of the corporate action plan.

Elisha added, when the analysis was started, the company will seek shareholder approval through the General Meeting of Shareholders (AGM) Annual this year.

He continued, if GIAA not do a quasi-reorganization possibilities of new dividend can be distributed in 2014. The company's accumulated losses to date in the book recorded Rp6, 8 trillion.

"With this corporate action, such losses will be eliminated in the book," he said.

Meanwhile, the airline recorded a rise in the red plate revenue reached 49.7%, up from Rp3, 46 trillion during the first three months of 2010, to Rp 5, 18 trillion in the same period this year. However, the increase in revenue can not help Garuda escape losses.

During the first quarter of 2011 the Company recorded a net loss of Rp183, 6 billion, after the same period last year recorded a profit of Rp18 billion.

According to President Director of Garuda Satar, the company recorded losses caused naikknya operating costs that exceed revenue growth. High oil prices have created a surge in operating expenses Garuda.

Garuda flight operating expenses rose 65.2% in first quarter 2011 to Rp2, 892 trillion. In addition, load tickets, sales, and promotions company in the three months totaled Rp547, 2 billion.

Although managed to reduce the cost of maintenance and repair, clear Emirsyah, Garuda can not suppress the increase in overall operating expenses recorded rose 42.3% to Rp5, 448 trillion, from Rp 3, 828 trillion in the first quarter last year.

The cost of fuel rises the highest recorded, 73.6% from Rp1, 128 trillion to Rp1, 959 trillion. While the cost of equipment rental & charter flight exp rose 57.8% from Rp 399 billion to Rp 629 billion in March 2011.

"Ticket, sales and promos up 54.8%. As we know, we often promos and commercials. This is also in preparation for IPO Garuda, "he said.

Thus, Garuda recorded an operating loss of Rp258, 7 billion. Outside of operations, Garuda also noted a reduction in revenue of up to 91.6% to Rp21, 1 billion. This is mainly caused by lower foreign exchange earnings due to increase in the rupiah. In addition, the company no longer benefit from debt restructuring as of last year.

However, Elisa added, perseroa recorded EBITDA rose 82% from Rp396 billion to Rp721 billion. While total assets increased 20% from Rp13, 66 trillion to Rp 16 trillion. Perwseraon obligation was decreased 2.6% from Rp10, 197 trillion to Rp9, 927 trillion. (Atp/OL-3)